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The Small Cap and Fledgling indices have fallen 7 per cent and 6 per cent respectively over the past month, but some old economy sectors, particularly construction and support services, provided a welcome safe haven for tech-averse investors.

The renewed turmoil affecting technology stocks saw mobile phone distribution and logistics firm European Telecom (ET) release its second profit warning in the space of just over three months in March. In December, ET offered investors the hammer blow that it didn't expect a profit in the year to March. This was a massive turnaround given Collins Stewart's expectations of £7.3 million at the pre-tax line and the news came just days after its joint venture (with Racal) Global Telematics had pulled from its intended Aim listing. But when it rains it pours - ET sent investors scurrying for home once more in March with the revelation that it is going to report 'a substantial loss' for the year. All of this caused the company to fall 62 per cent to 21p. It now stands at just 5 per cent of the price it was when it released its final results in June 2000. These showed a profit of £3.6 million.

Technology-based financial services firm Durlacher has had its hands burned more than most from the implosion in technology company share prices over the past few months and its interim results showed why. Revenue was down 42 per cent to £6.7 million while investment write-offs totalling £13 million made for a loss of £13.9 million for the six months to December. Chairman Geoffrey Chamberlain expressed confidence in the company's prospects but the market wasn't so sure and sent the shares down another 27 per cent to 12p, 97 per cent below their 2000 year high.

Construction groups continue to report good times though, with those offering a range of construction and support services looking in particularly rude health. The message from many such companies is that times are good, and look to continue to be so as long as market conditions remain stable, though the difficulties of recruitment and, for housebuilders, expanding land banks remain. One such diversified company is Kier, which reported yet another set of record results, its interims showing pre-tax profits up 21 per cent to £7.4 million on turnover ahead by 22 per cent at £591 million. The shares moved up slightly to 397.5p. Likewise at John Mowlem, where pre-tax profits on continuing operations for 2000 were up 45 per cent at £24.5 million and the company gained 5 per cent to 160p. Amongst other companies to report, Swan Hill was up 10 per cent to 85p, but in the wider reaches of the sector, housebuilder Redrow slid 5 per cent to 321p and aggregates and quarrying company Ennstone edged up 7 per cent to 30.5p.

Spread betting company IG came out with a terse statement commenting that its tax charge would have been nearly triple the £625,000 figure for the last year if Gordon Brown's plans for the industry had already been in place. The company did, however, report that trading was strong. Meanwhile high strength plastics manufacturer Victrex reported that 'demand has continued to grow ahead of expectations' with sales volume for the five months to the end of February 40 per cent ahead of last year's. The company's sterling share price performance continued with an extra 13 per cent rise to 401p. On a more disappointing note distributor BSS dropped 15 per cent to 281.5p after announcing that discussions that it expected would lead to an offer for the company had concluded without agreement.

The turmoil affecting the telecommunications industry will make Pressac's full year results, due out on 3 April, particularly interesting reading. The electronics and decorative equipment maker has been concentrating its efforts on growth in the mobile telephony market and counts among its customers giants like Siemens, Nokia and Ericsson. Analysts estimate around 21p earnings per share for the year, which would put the company on a forward p/e of less than 5 at a price of 102.5p (a third of the company's 2000 high). However, the company's evaluation of its future prospects will be foremost in investor minds